Multiple Choice
If the short-run aggregate supply curve is assumed to be horizontal,international capital flows are infinitely elastic,and the nominal exchange rate is fixed,then the big,comprehensive model corresponds to which of the following special cases?
A) classical open economy
B) IS-LM model
C) Mundell-Fleming with floating exchange rate
D) Mundell-Fleming with fixed exchange rate
Correct Answer:
Verified
Correct Answer:
Verified
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